Talking Points:
- US Dollar Extends Advance for a Fourth Consecutive Day
- S&P 500 Reaccelerates, Produces Largest Gain in a Week
- Crude Oil Rebound Stumbles, Gold Prices Treading Water
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices edged higher for a fourth consecutive day, with buyers seemingly on pace to set a new year-to-date high. Near-term resistance is at 11374, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 11422. Alternatively, a turn below the 23.6% Fib at 11315 opens the door for a challenge of the 14.6% expansion at 11278.
Daily Chart - Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices continue to march higher after clearing resistance at 2051.00, the 23.6% Fibonacci expansion, with buyers aiming to challenge the 38.2% level at 2081.20. A further push beyond that targets the 50% Fib at 2105.60. Alternatively, a reversal back below 2051.00 on a daily closing basis targets the 2022.10-32.30 area marked by the 14.6% expansion and the September 19 high.
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are edging upward en route toward resistance at 1212.23, the 38.2% Fibonacci retracement. A daily close above this barrier exposes a falling trend line at 1226.78. Alternatively, a reversal below the 1178.86-80.84 zone (December 2013 low, 23.6% Fib) targets the 14.6% retracement at 1161.49.
Daily Chart - Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices stumbled after trying to bounce as expected following the formation of a bullish Piercing Line candlestick pattern. A daily close below the 23.6% Fibonacci expansion at 78.95 exposes the 38.2% level at 77.32. Alternatively, a break above the 14.6% Fib at 79.96 sees falling trend line resistance at 80.91.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya's analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak
